Indian Electric Scooter and Motorcycles Market keeps momentum in 2025. In the first three months of the year, EVs sales have been over 370.000 with a still strong speed (+16.5%) although incentives have been reduced.
Market Overview
Following the introduction of strong incentives to the electric vehicles manufacturers, the Indian electric 2W market accelerated and in the last two years grew up from 176.996 (2021) to a record of 1.2 million (2024), with the introduction of new models from the Top players, TVS Motor as first.
Sales are sustained by strong government incentives for vehicles locally produced and utilizing components made in India. The level of incentives is changing time over time and a new scheme has just be introduced for current fiscal year.
Under the new EMPS 2024 plan, the government has set aside Rs 500 crore for electric two-wheelers and three-wheelers. Out of which, approx Rs 333.39 crore will be available to support up to 333,387 vehicle sales over four months. The subsidy for electric two-wheelers will be Rs 5,000 per kWh of battery capacity, capped at 15 percent of the vehicle’s factory price.
The maximum cap remains the same as compared to the FAME 2 scheme, but the subsidy per kWh is now half; as FAME 2 offered Rs 10,000 per kWh. Moreover, there’s an extra cap of Rs 10,000 per electric vehicle under EMPS.
Industry Trend and Perspectives
The start of 2025 was very positive for the sector, considering that the total Indian 2-wheeler domestic market started with a low tone.
In the first three months of the year, EVs sales have been over 370.000 with a still strong speed (+16.5%) although incentives have been reduced.
Looking at the competitive arena, the market leader still is Ola Electric which have lost 12.3% of sales after a disappointing review of February data, shared by the company with a wide excel from real figures.
In second place there is TVS Motor (+48.6%) thanks to the best selling EV model in the market, the iQube.
In third place Bajaj Auto (+36.5%) thanks to the success of the Chetak and the launch of the new Yulu.
Behind Ather keeps growing (+51.8%).
These top 4 brands hold over 80% of the EV market.
